The Euro may be readying to turn higher against the Japanese Yen after prices put in a Bullish Engulfing candlestick pattern. Positive RSI divergence bolsters the case for the upside scenario. Initial resistance is at 138.55, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 139.10. Falling channel floor support comes in at 137.45. A turn below that clears a path to test the February 4 low at 136.22

While tempting, we will tactically opt not to pursue a long position. The ECB stands out among the major central banks as moving further to the dovish side of the monetary policy spectrum, putting the Euro at an inherent disadvantage.